Quantum Rare Earth Developments Corp.

Quantum Rare Earth Developments Corp.

February 22, 2011 10:18 ET

Quantum Announces Results of Sampling Program at Elk Creek Niobium / Rare Earth Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 22, 2011) - Quantum Rare Earth Developments Corp. (TSX VENTURE:QRE)(OTCQX:QREDF)(FRANKFURT:BR3) ("Quantum", the "Company") is pleased to announce results of its 2010 re-sampling program of historic core from the Elk Creek Project, located in southeastern Nebraska, USA. As previously announced (December 17, 2010), the company performed an extensive (re)sampling program of existing sample pulps and rejects associated with the historic drill programs, which were completed during the 1970's and 1980's by Molycorp Inc. A majority of drill pulps, rejects and core from these programs, are preserved at the University of Nebraska, and are available to the company.

The company is in receipt of all niobium results; while results for rare earth elements (REE's) are expected in the next 2-3 weeks. A summary of the niobium mineralization within several of the historic drill holes from the area of the historic resource area are as follows:

Drillhole From (m) To (m) Interval (m) Nb2O5(%)(1) (2) (m)
EC-11 243.8 384.0 140.2 0.64  
including 300.2 324.6 24.4 1.19  
EC-11 501.4 768.1 266.7 0.71 41.1
including 696.5 768.1 71.6 1.19  
EC-14 378.0 707.1 329.2 0.57 57.9
including 378.0 445.0 67.1 0.71  
  621.8 676.7 54.9 0.73  
EC-16 362.7 774.2 411.5 0.64 15.2
including 551.7 682.8 131.1 0.74  
  707.1 774.2 67.1 0.91  
EC-26 429.8 688.8 259.1 0.77 3.0
including 554.7 597.4 42.7 1.10  
  615.7 688.8 73.2 0.95  
EC-27 362.7 411.5 48.8 0.57 3.0
EC-28 198.1 769.6 571.5 0.68  
including 262.1 317.0 54.9 0.72  
  442.0 612.6 170.7 0.86  
EC-29 298.7 499.9 201.2 0.99 3.0
including 396.2 472.4 76.2 1.27  
EC-30 213.4 362.7 149.4 0.65 17.4
including 317.0 353.6 36.6 1.12  
EC-30 509.0 688.8 179.8 0.60  
including 661.4 685.8 24.4 0.95  
EC-31 216.4 268.2 51.8 0.79  
EC-32 198.7 222.5 23.8 0.67  
EC-32 576.1 603.5 27.4 0.70  
(1) - Nb2O5 by ALS Chemex of North Vancouver using the ME-XRF10 method whereby samples are prepared by pulverizing to 90% and passing 75 microns; then decomposed utilizing a lithium borate flux and analyzed by X-Ray Flourescence Spectrometry (XRF). Except where historic values are used as indicated in (2).
(2) - Contains intervals that were not re-sampled in 2010, therefore historic values were used. The width of the interval used (in metres) is included.

The 2010 sampling program utilized pulverized material that was prepared by the analytical division of Molycorp Inc. which were derived from 5 or 10 foot intervals of split NQ or HQ sized drill core. A rigorous quality assurance and quality control protocol was established for the 2010 sampling program; and included the routine insertion of field duplicates, laboratory pulp duplicates, blanks and niobium certified reference standards. Samples were shipped to the ALS Chemex facility in Reno, NV and prepared for analysis at the ALS Chemex testing facility in North Vancouver. A portion of the niobium results were checked with an external laboratory, Hazen Research Inc. of Golden, CO.

Preliminary investigations indicate that the recent niobium values correlate well with the historic niobium values obtained by Molycorp Inc.

These results will support a NI43-101 compliant resource estimate and Technical Report by Wardrop Engineering; which will be an independent review of niobium mineralization within the historic resource area located within the Elk Creek Carbonatite, in addition to the known Niobium and REE mineralization outside of the historic resource area.

The Elk Creek Carbonatite is an intrusive complex of carbonatite and related rocks, and is host to significant niobium and rare earth element (REE) mineralization. The property was held under an option agreement during the 1970s and 1980s by Molycorp Inc., at which time considerable exploration of the project took place. At least 113 core holes were completed within the outline of the seven-kilometre-diameter geophysical anomaly, with 25 holes completed within a core zone, where high-grade niobium mineralization was identified. Based upon the exploration, a historic resource estimate of "39.4 million tons of 0.82 per cent Nb2O5, and is open to the north, west and at depth," was prepared by Molycorp Inc. for this core zone (Molycorp internal memorandum, Feb. 5, 1986).

The estimates of historic resources predate, and are therefore non-compliant with, National Instrument 43-101 reporting standards. The company is not treating the historical estimates as current mineral resources or reserves, and the company has not finalized an independent investigation of the resource estimates, and they should not be relied upon. The company believes that these historical drill results and estimates provide a conceptual indication of the potential of mineral occurrences within the project, and are relevant to the continuing exploration.

Qualified Person: Mr. Neil McCallum, P.Geol. is the qualified person responsible for the Elk Creek Carbonatite Project and has read and approved the technical disclosure contained in this news release.

On Behalf of the Board,

Peter Dickie, President, CEO

Cautionary note: This report contains forward looking statements, particularly those regarding cash flow, capital expenditures and investment plans. Resource estimates, unless specifically noted, are considered speculative. The company has filed a National Instrument 43-101 report on the Archie Lake property, and intends to file additional NI 43-101 reports on additional properties as soon as the information is available. Any and all other resource or reserve estimates are historical in nature, and should not be relied upon. By their nature, forward looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary Note to US investors: The U.S. Securities and Exchange Commission specifically prohibits the use of certain terms, such as "reserves" unless such figures are based upon actual production or formation tests and can be shown to be economically and legally producible under existing economic and operating conditions.

"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."

Contact Information

  • Quantum Rare Earth Developments Corp.
    Peter Dickie
    President and CEO
    (604) 669-9330
    (604) 669-9335 (FAX)